SMM May 16 Report:
Lead prices experienced sideways movement. Downstream battery producers maintained a strong wait-and-see sentiment, meeting their rigid production needs through cargo pick-up under long-term contracts, while their willingness to purchase spot orders remained low. Additionally, secondary lead smelters, facing cost pressures, showed low willingness to sell and were reluctant to accept transactions at large discounts. Amidst the sentiment of "upstream suppliers not selling and downstream buyers not purchasing," the trading activity in the spot market for secondary refined lead was sluggish. Furthermore, the weak enthusiasm of downstream customers to purchase lead made it difficult for suppliers of primary lead to sell their cargo, with some brands even selling at a small discount against the SMM 1# lead average price. Under such market conditions, secondary lead enterprises were forced to expand discounts to sell, leaving no room for profit. As of May 16, 2025, the theoretical comprehensive profit and loss for large-scale secondary lead enterprises was -592 yuan/mt, while for small- and medium-sized secondary lead enterprises, it was -820 yuan/mt.
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